Endogenous expenditures and student achievement

This study examines the effects of expenditures per pupil and expenditure-related variables on student achievement in Illinois. Particular attention is given to the endogenous relationship between expenditures and achievement. Demographic characteristics of a school district are used to identify two-stage least squares estimates of achievement. It is shown that expenditures per pupil and average teacher salary have modest positive effects on eighth grade test scores in mathematics.